Title
Staff Report for Resolution Approving and Authorizing the City Manager to Execute a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority (CFMA) and Approving the Issuance of Revenue Bonds by the CFMA to Finance the Acquisition and Rehabilitation of a Multifamily Rental Housing Development to Be Owned by a Limited Partnership to Be Established by Christian Church Homes or Its Affiliate
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council conduct a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA), Section 147(f) of the Internal Revenue Code of 1986, as amended, and California Government Code Section 6500 (and following) to become a member of CMFA and adopt a resolution approving the issuance of revenue bonds by the CMFA and authorizing the City Manager to execute the Joint Exercise of Powers Agreement with the CMFA.
BACKGROUND
Christian Church Homes (CCH) requested that the CMFA serve as the municipal issuer of the bonds in an aggregate principal amount not to exceed sixteen million dollars ($16,000,000) of tax-exempt revenue bonds. The proceeds of the bonds will be used to finance the acquisition and rehabilitation of a 75-unit multifamily housing rental facility (currently known as Fargo Senior Center) located at 868 Fargo Avenue (the Project). The facilities are to be owned by a California limited partnership (Borrower) to be formed by or on behalf of CCH and will be operated initially by CCH Management Services. A portion of the units in the Project will be occupied by low or very low-income households.
In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the “TEFRA Hearing”) to provide community members an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to mem...
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